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Determinants of Demand - Complements by cassrynne on 07-15-2008
If the price of the complement rises (falls), the demand for the product falls (rises)
Good day, sir. I would just like to ask if the gasoline price hike has somewhat affected your automobile business?
Good day to you, too. To answer your question, yes it has greatly affected our sales.
In what way, sir?
There has been a tremendous decline in our sales for the past three months. This can be attributed to continuous increase in the price of gasoline.
So, in summary, you are saying that the gasoline price hike is the reason for your declining sales.
Yes, that's right.
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